Find the compound annual growth rate between two values, what a rate turns your money into, or how many years a target needs. Three questions, one formula.
What is the difference between CAGR and absolute return?
Absolute return is the total change: ₹1,00,000 to ₹2,00,000 is 100%. CAGR spreads that across the years, giving 14.87% a year over 5 years. Absolute return without a time period tells you almost nothing.
Is CAGR the same as the return my fund shows?
For a lumpsum held for more than a year, yes - funds report CAGR. For a SIP they report XIRR instead, because each instalment was invested for a different length of time. Do not compare a SIP XIRR with a lumpsum CAGR.
Can CAGR be negative?
Yes. If the final value is lower than the starting value, the CAGR is negative and shows how fast the money shrank each year. This calculator handles losses.
Does CAGR show the risk I took?
No, and that is its blind spot. Two investments can both show 12% CAGR while one moved smoothly and the other halved twice on the way. CAGR only reads the first and the last figure.
How do I use CAGR to compare a property with a mutual fund?
Convert both to CAGR and the comparison becomes fair. Remember to include everything you paid on the property - stamp duty, registration, maintenance, and brokerage - or the number flatters it.
What is a good CAGR in India?
An FD sits near 6% to 7%. Long-term Indian equity has delivered roughly 11% to 13%. Anything far above that either carries real risk or covers too short a period to mean much.
How long does money take to double?
Switch the mode to solve for the years, set the final value to twice the start, and read the answer. At 12% it is 6.12 years, at 8% it is 9.01 years, and at 6% it is 11.9 years. The rule of 72 gets you close for a quick mental check: 72 divided by the rate.